Protomet PILOT schedule receives Oak Ridge IDB approval

The Oak Ridge Industrial Development Board approved a payment-in-lieu-of-taxes schedule for the expansion of Protomet Corp., but now the issue must go to the City Council for approval.

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By Beverly Major

Oakridger - Oak Ridge, TN

By Beverly Major

Posted Mar. 31, 2013 at 4:49 PM
Updated Mar 31, 2013 at 4:58 PM

By Beverly Major

Posted Mar. 31, 2013 at 4:49 PM
Updated Mar 31, 2013 at 4:58 PM

Oak Ridge, Tenn.

The Oak Ridge Industrial Development Board approved a payment-in-lieu-of-taxes schedule for the expansion of Protomet Corp., but now the issue must go to the City Council for approval.

Protomet spokesman Richard Laney, a marketing and communications expert, said the IDB voted unanimously to approve the PILOT — which, if approved by the Oak Ridge City Council, will allow the company to expand its facility and add to its employee base.

“Protomet qualified for a five-year, 50 percent abatement on the new part,” said IDB Chairman David Wilson. “They requested a five-year abatement at 100 percent for the new part, and we approved that.”

Wilson said IDB’s only authorized under its matrix to approve at 50 percent, so the board passed a resolution to recommend City Council approve the 100 percent abatement plan.

“Protomet pays about $38,000 in taxes on the existing facility and that won’t change,” Wilson said.

The manufacturing, engineering and technology corporation is located at 1010 Larson Drive in the Bethel Valley Industrial Park. The new expansion would add 21,500 square feet to the current 15,360 square-foot facility, nearly tripling its size.

Laney said the PILOT approval was also announced at a news conference at the facility on Tuesday. He and Protomet president & owner Jeff Bohanan gave an overview of the company’s history at the news conference and said the expansion is “Phase II” of the company’s goal.

Protomet was founded in 1997 and received its first PILOT from the city in 2005. Bohanan said earlier the company completed the PILOT under the schedule set up by the IDB.

“We’re now entering Phase II and again partnering with the city of Oak Ridge,” Laney said. “We’ll meet with the Council in about two weeks.”

If approved, Protomet will be on schedule to break ground in May. Bohanan said earlier the expansion would allow the company to hire about 30 new employees from Anderson County.